Australian families may be set to pay significantly more for private health insurance in 2026, as premiums are projected to rise between 3.9 and 4.4 per cent.
According to analysis by Money.com.au, this increase could see households paying up to $200 more annually, while single policyholders may face additional costs of $127–$144 per year.
The estimates are based on the average combined hospital and extras policy, which currently costs $3,264 for singles and $4,908 for families. If health inflation continues near the four per cent mark, the upcoming premium adjustments could align with or even exceed health price inflation.
Chris Whitelaw, General Manager of Health Insurance at Money.com.au, described the projected rise as a “reset” following several years of unusually low premium growth. “Premium increases remained exceptionally low for years, and 2026 may mark a return to a more ‘normal,’ though still substantial, growth cycle,” he said. Whitelaw warned that the increase may prompt some Australians to downgrade or cancel their insurance policies, urging policyholders to review and compare options.
The proposed premium changes have been submitted to Federal Health Minister Mark Butler for approval. While the government sets a single industry-average increase each year, individual insurers can implement higher or lower adjustments. This means that some Australians could face rises well above the headline figure, while others may see smaller increases.
Private health insurance premiums in Australia have historically remained below overall health inflation since 2021, but the gap has been gradually closing. With the rising cost of living and healthcare, the 2026 adjustments may place additional financial pressure on households already managing tight budgets.
Experts recommend that policyholders carefully examine their current coverage, compare plans from different insurers, and consider the cost-benefit of any potential premium rise before making decisions.
